TO: Cliff O’Connor, CEO AcuScan, Inc.
FROM: VP of Organizational Development
SUBJECT: Observations and Recommendations for Optimization Project DATE: June 30, 2008
Purpose and Scope of Document
The purpose of this document is to provide a basic overview of the current status surrounding the AcuScan Optimization Project. This document will provide a brief background and summary of the current situation, and then provide key points relating to the underlying issues. This document will then outline the options AcuScan has in order to address the project issues and recommend the most feasible course of action.
Summary of the Situation
The AcuScan Optimization Project, known as “Operation Optimize”, is experiencing both cost and resource restraints. The company must cut costs by 15% in almost all departments, while at the same time creating new expenses by trying to launch a new product. The company has not produced a new product in some time and it is believed that in order to increase sales, the current iScanner technology must be utilized and built upon to reach out to a new market. However, there is a conflict between the Director of Marketing and the Senior Engineer, in that they have a different understanding of what can be and should be accomplished with the limited resources available.
The Director of Marketing, Pat Lambert, crafted a project development plan that was based on an overall optimistic view of the project. Pat had concluded that the current iScanner technology would transition easily into the retail market with minimal efforts in programming and engineering. As of yet, no competitor had used eye scanning technology in the retail industry and this was considered a great opportunity for AcuScan. In order to take advantage of this unique situation, it was proposed that AcuScan release a product by August in order to gain the market advantage. A budget of $575K was proposed in order to cover the costs of the...